Governments around the world are promising programs to prevent future business management problems

After every economic, financial, or corporate governance crisis, governments promise action to prevent problems from happening again. The actions invariably impose more regulations on enterprises, which increase management costs and complexity, and do not address or solve the actual problems.

There is only one problem to solve, the problem of obsolete 20^th century enterprise management

The fundamental problem underlying every economic, financial, and corporate governance crisis is the failure to understand and manage the business properly on the part of managers, accountants and auditors, and government regulators. The problems are inherent in 20^th century management structures laid over businesses worldwide that prevent actual business management.

There is only one solution, organize the actual business with R-pM and apply 21^st Century Management Conventions and Standards

The solution to the problem is available today with Result-performance Management (R-pM) to assist businesses, professional bodies, educational institutions, business service and solution providers, and government programs to institute and support proper business management. R-pM replaces 20^th century management structures laid over the business, with one business structure for 21^st Century Management.

A government “Business Management Program” will prevent future problems and provide significant economic benefits

Most governments likely will continue the past cosmetic approach to pass new regulations and announce that they have solved the problem. A courageous government must step forward and take the lead to institute a “Business Management Program” as discussed in this article. Once one government establishes its country as the leader and begins the program, other countries will be forced to follow. But, the lead country will always have the advantages developed by the leader. [more...]

Your actual business is hidden under overlaid 20^th century management structures

Managers today think that they are managing their business. However, no manager today manages his actual business. Managers manage the enterprise through structures laid over the business. These overlaid structures hide the business and prevent actual business management.

You must learn your actual business and the entities that comprise your business

The enterprise business is defined as "the activity of providing goods and services". The enterprise must directly manage the business to manage providing high-value and high-quality goods and services for its customers. The business is managed by organizing and managing business activity in the utilization of capital in performance and business economic outputs in the results that provide customer goods and services. 20^th century management utilized today does not organize and manage the enterprise business, but rather organizes and manages the business enterprise through structures laid over the business. This causes many unsolvable problems with reorganizations, unknown investments and returns, unknown capital worth, unknown result value and quality, IT overheads, misleading management information, change management, corporate governance, business collaboration, and on and on.

R-pM allows you to gain control of your business and abolish structures laid over your business

R-pM organizes and manages business activity in the utilization of capital that is organized as specific capital solutions. R-pM organizes and manages goods and services as specific economic output results that are produced by the business. R-pM organizes the business as one integrated structure for all management needs by utilizing specific capital solutions in performance to produce specific results. R-pM captures actual business data on result volumes, value, and quality produced by the capacity, cost, and effectiveness of solutions utilized in performance. R-pM provides one set of clearly-defined management information on the current business and progress to the strategic business defined by a strategic business structure. R-pM manages cost-effective performance to produce high-value and high-quality goods and services as input results to the customer business. [more...]

Many methods and books have addressed the alignment problem, but the problem remains unsolvable

The 20^th century enterprise has contrived many methods and spent enormous sums to solve the alignment problem inherent in aligning performance with performance. Even after all this, the unsolvable alignment problem remains. In an early Article, we identified alignment as one of The Top Ten Problems with 20^th Century Management.

The alignment problem can be solved only by organizing the business to align capital utilized in performance with the result produced

The solution to the alignment problem is very simple. Follow the first rule of 21^st Century Management; organize and manage the business. Result-performance Management (R-pM) organizes the business in economic output results produced, investments in capital solutions to produce results, and the deployment, alignment, integration, and utilization of specific solutions to produce specific results. Capital solutions utilized to produce the same result are aligned. [more...]

Business information is inconsistent, incomplete, and inaccurate in today's enterprise

Enterprises have much to gain by properly organizing and leveraging information to provide value. Information is not managed properly for support and utilization in today’s enterprise. The business is not organized and managed to capture information produced directly by the business and to apply information directly to the business. The categories of information are not supported as information capital to produce business results. There are no precisely-defined data entities to integrate information from the various systems into a business information base for consistent management information. Most direct business data is never captured and management information is reported in conflicting and inaccurate sets.

The information complexity and accuracy problems are addressed by additional information technology investments

Each management structure and information system defines the enterprise differently producing the information complexity and accuracy problem. Large information technology investments for data reconciliation, enterprise information management, IT architectures, specialized knowledge and records management, etc can never solve the problems.

R-pM integrates actual data, knowledge, records, and intelligence in one Business Information Base

R-pM provides the proper support for information capital to provide information solutions, to utilize solutions to capture data and apply information directly for the business, and to integrate information on the business in one consistent and accurate Business Information Base for transparent management and good corporate governance. [more...]

Today's enterprise cannot manage the business in capital, performance, or results

Today’s enterprise cannot manage the business, since organization, process, account, activity, human resource, and other rigid management structures are laid over the actual business. The business consists of capital invested as solutions in the business, business performance in the utilization of capital solutions, and output results produced by business performance. Structures laid over the business conflict with the real changing business causing unsolvable 20^th century management problems.

Capital, performance, and results must be organized to organize the business

Result-performance Management (R-pM) organizes the business for 21^st century management. R-pM organizes capital as business, human, facility, and management solutions. R-pM organizes results to produce revenues, manage and support capital, and manage and develop the current to strategic business. R-pM organizes performance to utilize specific solutions to incur costs to produce value in a result.

R-pM manages the business in three dimensions: result, performance, and management

R-pM manages results produced across the business to provide value and quality to customers and reach revenue result goals. R-pM optimizes performance for each capital solution utilized to produce results to provide high-worth solutions that produce result value and quality at a controlled cost to reach profit margin result goals. R-pM provides management over time to manage and collaborate in value-quality chains, to plan and manage capital development and result value-added benefits, and to govern the business to reach strategic value result goal [more...]

All enterprises are burdened by 20^th century management problems today

Enterprises can compete today, not because they are efficient and effective, but, because they are all inefficient and ineffective. All businesses today lay organization and management structures over the business that conflict with the actual business and cause unsolvable problems that can never be solved by laying new structures over the business.

The first to organize the real business for 21^st Century Management gain significant competitive advantage

The business consists of three components: capital investments made in the business in specific capital solutions of developed worth, output results of value and quality that must be produced for business success, and performance in the utilization of specific solutions to incur costs and provide effectiveness to produce specific results. R-pm organizes the business for 21^st Century Management to provide immediate competitive advantages.

R-pM manages capital worth and performance to minimize costs and maximize result value-added and quality across the business

With R-pM all management and personnel know the solutions they must utilize effectively and the value and quality they must produce in results. Capital is developed only to increase result value-added and the worth of human and other capital. Result value-added and quality are managed along the chain to produce high value-quality customer results. The actual business is managed to quickly change capital utilized and results produced and to integrate with suppliers, business partners, and customers for shared value-added. R-pM provides measurable competitive differentiation and advantage not possible today with 20^th century management. [more...]

20^th century management does not provide competitive differentiation and advantage for the 21^st century

Management structures laid over the business in today’s enterprises cannot create competitive differentiation and advantage from utilization of technology, the Internet, and intellectual capital. A new business structure is required to enable competitive advantage in the 21^st century. The obstacle is conventional thinking that prevents a complete new definition of the business and continues to improve obsolete management structures laid over the business.

The 21^st century presents new requirements for competitive differentiation and advantage

In the 21st century, business competition and collaboration can come from anywhere in the world. Competitive differentiation and advantage in the 21^st century requires that the business is simplified for fast and flexible change, is organized to utilize technology effectively and enable business communication and collaboration, and is managed to provide customer value and quality.

R-pM provides significant new competitive differentiators and advantages for the 21^st century

21^st century competitive differentiation and advantage is provided by Result-performance Management (R-pM). R-pM uses information technology to organize the actual business for significant competitive advantage in the 21^st century. R-pM organizes business capital invested, performance to utilize capital, and output results produced to provide competitive differentiation in high value and quality customer results. R-pM makes the unorganized business burdened by overlaid structures a distinct competitive disadvantage in the 21^st century. [more...]

R-pM organizes business results, capital, and performance in one business structure

Result-performance Management (R-pM) organizes and manages one integrated enterprise business structure. The business structure is comprised of the result structure to organize and relate results to be produced, the capital structure to organize the capital that is available to produce specific results, and the performance structure that shows specific performance solutions deployed with rules and exceptions to produce specific results.

The capital structure organizes capital available as performance solutions

A key component of the business structure is the capital structure that organizes enterprise capital as specific performance solutions that are available to produce specific results. Capital is categorized to be managed properly by the specific human capabilities needed. Capital is classified by the way it must be integrated and utilized to produce results effectively. Organized capital is defined as modules for easy deployment to a new result and replication to define capital needed for a similar result set.

Performance Management manages the deployment of qualified solutions to produce results

R-pM replaces administration, undefined capital, and intangible assets with Capital Management get the most out of all capital and know and manage the return on all capital investments. Performance Management manages the deployment of capital from the capital structure to the performance structure to provide qualified solutions needed to produce specific results effectively, to know all costs against result value, to manage the capacity producing a volume of results, and to manage the effectiveness needed for high-quality results.

A well-managed enterprise must manage the cost, capacity, and effectiveness of all capital in order to produce value-quality results. The enterprise can use R-pM to reduce costs significantly, know and improve capital worth, and ensure beneficial capital development investments [more...]

Enterprises today are organized and managed using many structures

Throughout the 20^th century, we have implemented organization, process, account, performance management, and other structures. These many structures, and the different entities used, produce business and information complexity and many other problems. There has long been recognition of the problems. Many books have been written and additional management structures have been devised, but the problems remain.

Enterprises and management developers have been looking for one integrating structure

There are many efforts to replace these structures with one simple and consistently-defined structure for business collaboration, reliable management information, use of common solutions, and other needs. Until now, no one has defined the one integrated structure that can be used to organize and manage any enterprise in any industry. Each new structure is laid over existing structures compounding the problems.

The one integrating structure exists; it is the business itself

There is one structure. It has been there all along! That structure is the business itself!

The enterprise business is defined as “the utilization of capital of worth in performance to incur costs and produce value in results”. The business consists of three components:

• Business results produced as economic outputs of value from the business
• Capital in the specific performance solutions invested in the business
• Performance in the utilization of performance solutions to produce results

These components of the business are organized into the current and strategic business structures that replace all structures laid over the business for transparent management of strategic result value creation.

R-pM provides the only method to organize and manage the actual business

Today's unsolvable business problems are caused by conflicts between the actual business and structures laid over the business. Result-performance Management (R-pM) organizes the business, as current and strategic structures, for 21^st century management. R-pM replaces all overlaid structures with the appropriate business structure and leaves unsolvable 20^th century problems behind [more...]

Information systems gather corporate data that is irrelevant to the business

20^th century information systems do not capture business data or provide the information needed to manage the actual business. 20^th century information systems manage organization and management structures laid over the business. Management structures are arbitrary and define inconsistent data entities. Data on hundreds entities must be recorded throughout the corporation, and then processed and managed creating information complexity and providing mountains of confusing information.

R-pM organizes the business to capture actual business data

The objective of 21^st century management is to organize and manage the business of the corporation. Result-performance Management (R-pM) directly organizes and manages the business to record actual business data and report business management information that is not available today. Timely integrated information solutions are delivered to produce specific business and management results. The business is defined by three information entities and managed through six information sets.

Business management information is used to manage the business directly

R-pM provides actual business management information on the worth and return of capital investments, utilization of capital in performance to incur costs and produce results, and results of value produced by the business. Once actual business information is provided, corporate information provided by overlaid 20^th century structures becomes irrelevant and can be abolished. 21^st century management can then concentrate on managing the business [more...]